45% Big jump lifts average value
Homeowners are warned not to look at new rateable valuations as a potential price tag
The value of the average Auckland residential property jumped 45 per cent in the latest Auckland Council rateable values review — but homeowners have been cautioned not to see the new value as a price tag.
The average house value in Auckland jumped to $1.076 million but homeowners have to wait until Monday to find out the most current valuation of their property.
Two small settlements just north of Pukekohe have experienced such a growth in popularity their average value has surged by 151 per cent.
The two areas, Paerata and Runciman, have a combined population of just 1572 but have grown the most in value across all Auckland suburbs in the revaluation.
Sixty-eight suburbs rose in value by 50 per cent or more, with two rising in value by more than 80 per cent since the last valuation: Drury, up 81 per cent, and Westgate, up 86 per cent. Waiheke Island, Papakura and Papatoetoe-Otara all grew in average value by more than 60 per cent — up 64 per cent, 61 per cent and 62 per cent respectively.
Three other local board areas also showed jumps of more than 50 per cent in value: Henderson-Massey 51 per cent, Mangere-Otahuhu 55 per cent and Manurewa 53 per cent.
A property expert has cautioned Aucklanders about seeing their home’s new rateable value as an actual price tag.
Colliers national director research and consulting, Alan McMahon, said there were always some who might look to sell off the back of a higher RV.
“It [RV] doesn't mean much, it doesn't mean your house is worth 50 per cent more than it was worth last week. It's just a snapshot estimate.”
Homeowners thinking of making a quick buck off their house as Auckland region property values surge in the latest council revaluation should think again.
Auckland Council yesterday revealed the total value of all residential properties in the region jumped by 45 per cent, taking the average house value in the Super City to $1.076 million.
The individual ( RV) rateable values and dollar values of each suburb won’t be available till Monday. While the broad trends indicate most properties will see a rise in RV, experts caution against seeing this as an actual price tag.
Colliers national director research and consulting, Alan McMahon, said there were always some who might be a bit naive who would look to sell off the back of a higher RV.
However, he said RVs were not indicative of market value or a property’s potential to sell.
“It [RV] doesn’t mean much, it doesn’t mean your house is worth 50 per cent more than what it was worth last week, it’s just a snapshot estimate. We should be very cautious about suddenly thinking we are wealthier because rating valuations are going up.”
In terms of people looking to get an additional loan off what may seem like greater equity, he said the same applied: “Banks will almost always need a registered valuation before they can commit to lending anything.”
McMahon said yesterday’s sharp rise in valuations and where they were located did not come as a surprise.
“It’s logical that the weight of that price or value uplift is concentrated where values are lower.”
He said wages had not risen in line with house prices and not everyone could afford a million-dollar property, so many would be looking to the cheaper suburbs.
“More demand in those areas will mean a high rise in value.”
In terms of local board areas, Waiheke Island, Papakura and Papatoetoe-Otara all grew in average value by more than 60 per cent; up 64 per cent, 61 per cent and 62 per cent respectively.
The council also provided a breakdown of the percentage value change since the last revaluations in 2014 to the suburb level, which showed two suburbs rising by more than 100 per cent in value, Paerata-Runciman, 151 per cent, and Wainui-Waitoki, which grew by 102 per cent.
Sixty-eight suburbs rose in value by 50 per cent or more, with two rising in value by
more than 80 per cent since the last valuation — Drury up 81 per cent and Westgate up 86 per cent.
The valuation figures, which Auckland Council used to help calculate property rates, could lead to a rise in homeowners’ rates bills — albeit officials have said this would be unlikely till next year.
CoreLogic head of research Nick Goodall said rates rises were more to do with the rise in proportion to the change in values in other suburbs.
“Households whose property values have risen at a higher percentage than others in the city could be hit with a higher rates rise in proportion to those whose values have not risen as much.”
Josh, 26, and his fiancee Mikayla, 25, moved into their own house in Papakura in midAugust. Papakura had seen a rise in value of 65 per cent since the last property revaluation, 20 per cent above the average.
The 26-year-old sales rep was not concerned about the affordability of the rates, but hoped the council would use the rates he paid on his home suburb’s infrastructure before anything else: “If rates are going to go towards doing things for the area, to improve roading, then that’s worthwhile, but if it is going to go back into the black hole of council, I’m not too fussed about that.”
Auckland council head of rates Debbie Acott said property valuations helped the council work out everyone’s share of rates. There was no identical correlation between value rises and rates rises.
“They don’t mean that we collect any more money. However, we won’t know the impact of this revaluation on rates until we agree our next budget in 2018, so I encourage Aucklanders to view these valuations with that in mind.”